January 15, 2013 |
WASHINGTON - A failure by Congress to raise the debt limit "in a timely manner" could lead to a downgrade of the nation's AAA credit rating, Fitch Ratings said Tuesday. Republicans want major government spending cuts in exchange for a debt-limit increase. But Fitch, one of three major credit-rating companies, said the debt ceiling should not be used to force a deficit-reduction plan. "In Fitch's opinion, the debt ceiling is an ineffective and potentially dangerous mechanism for enforcing fiscal discipline," the company said.
November 16, 2012 |
Credit-rating companies in the United States are beset by shortcomings, failing to act quickly enough to issue downgrades and not properly documenting ratings decisions, the Securities and Exchange Commission said in a report. The SEC said Thursday that the country's largest credit-rating firms — Standard & Poor's Corp., Moody's Investors Service and Fitch Ratings — did not follow their own policies in issuing ratings and failed to accurately document their decisions. This was the second report the SEC has issued about ratings firms, a responsibility the agency inherited under the Dodd-Frank financial reform act. The report evaluated the performance of rating companies from August 2010 through September 2011.
September 12, 2012
In case anyone had forgotten, Moody's Investors Service issued a stark reminder Tuesday that the federal government is speeding headlong toward a political and financial cliff. On Jan. 1, a number of temporary tax cuts are due to expire just as new spending restraints kick in, pulling hundreds of billions of dollars out of the U.S. economy and potentially triggering another recession. At the same time, Washington is expected to reach the limit of its borrowing authority, necessitating another increase in its debt limit.
September 12, 2012 |
WASHINGTON — Moody's Investor Services warned that it probably would downgrade the Aaa credit rating of the U.S. if government officials don't deal with the nation's debt problems. The credit rating firm said negotiations between Congress and the White House on the nation's 2013 budget and a decision on reducing the high ratio of debt to gross domestic product will be key to acting on its top credit rating. "If those negotiations lead to specific policies that produce a stabilization and then downward trend in the ratio of federal debt to GDP over the medium term, the rating will likely be affirmed and the outlook returned to stable," Moody's said.
September 10, 2012 |
Neither side in the contentious presidential race has been immune to spinning reality in its direction, but it is the Republican vice presidential nominee - Rep. Paul D. Ryan of Wisconsin - who seems particularly averse to admitting when the facts don't line up the way he wants them to. The Atlantic's James Fallows suggested in an essay over the weekend a couple of reasons why Ryan has taken such a flogging in the media for offering “selectively...
June 22, 2012 |
Moody's Investors Service slashed the credit ratings of more than a dozen giant global banks amid worries that Europe's economic turmoil could slow both profit and growth. The downgrades, announced after the close of U.S. financial markets Thursday, included Goldman Sachs Group Inc., JPMorgan Chase & Co., Morgan Stanley, Citigroup Inc. and Bank of America Corp. The move came as the 15 banks singled out by Moody's try to navigate through the European debt crisis, which could have a major effect on their trading businesses.